Question

One major problem in calculating national income

Answer 1

The following points will highlight the six major Problems in Measuring or calculating National Income. The Problems are:

1. Exclusion of Real Transactions

2. The Value of Leisure

3. Cost of Environmental Damage

4. The Underground Economy

5. Transfer Payments and Capital Gains

6. Valuation of Inventories

7. Self-Consumption

8. Lack of Official Records

9. Imputed Income

10. Valuation of Government Service.